U.K. to Abolish Cheques as Payment Form
Is the U.K. ahead of the curve; or the lone wolf?
from Civil Society:
Cheques will be phased out as legal tender by the end of 2018, according to a decision made today by the Payments Council Board.
The board today announced that it will close the central cheque clearing by 31 October, 2018 in response to the long term and what it called “terminal” decline of the payment form.
Civil Society first reported rumours that the council was expected to announced the decline of cheques last month, when some charities expressed concern about how this would impact on their processing payments – particularly from older donors.
Paul Smee, chief executive of the Payments Council, said: “This announcement marks the start of extensive work that we need to do to ensure that everyone has a viable alternative, should the cheque clearing close.
“We aim to be very transparent and we will continue to consult fully with all interested parties. There will be a critical review in 2016 when the Payments Council will decide whether sufficient change has occurred against agreed published criteria, to press ahead to do away with the cheque in 2018.
“There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement.”